Svetoslav,

In the future please post the specs about your hosting OS, version of Magento, etc. I am going to just post some typical solutions to your problem.

Run Indexing from the CLI

1. from the CLI at the root of your magento installation

    php shell/indexer.php --reindex catalog_product_price
   

No folders in var/

1. Make sure that the var/ folder has the correct file permissions and ownership. Magento needs to write to those folders.

Magento Permissions & Privileges

2. I recently ran across an install of magento that located the var folder in the root tmp folder of the server, you may want to check there. It was located in "/tmp/magento/var/" If your var folder is located there, it is because you have a permissions issue.

Change your memory limit

I agree with sean! Change this in your .htaccess that is located in your site root ini_set('memory_limit','2048M');

Svetoslav,

In the future please post the specs about your hosting OS, version of Magento, etc. I am going to just post some typical solutions to your problem.

Run Indexing from the CLI

1. from the CLI at the root of your magento installation

    php shell/indexer.php --reindex catalog_product_price
   

No folders in var/

1. Make sure that the var/ folder has the correct file permissions and ownership. Magento needs to write to those folders.

Magento Permissions & Privileges

2. I recently ran across an install of magento that located the var folder in the root tmp folder of the server, you may want to check there. It was located in /tmp/magento/var/ If your var folder is located there, it is because you have a permissions issue.

Change your memory limit

I agree with sean! Change this in your .htaccess that is located in your site root

ini_set('memory_limit','2048M');